Dominion Energy has begun construction on the Coastal Virginia Offshore Wind (CVOW) project, located 27 miles off the coast of Virginia Beach.

CVOW will consist of two six-megawatt (MW) wind turbines and is the only fully permitted offshore wind project in U.S. federal waters. The project is expected to start producing power for up to 3,000 homes next year, reports Daily Energy Insider.

Dominion Energy expects $1.1 billion in offshore wind investments through 2023.

Offshore wind, while flourishing in Europe, has been slow to develop in the U.S., primarily because of high costs. That's changing as prices decline and states see the technology as crucial for meeting clean-energy goals.

Deepwater Wind, now a subsidiary of Orsted, completed the first U.S. offshore wind farm near Rhode Island in 2016.

Source: GCaptain; Daily Energy Insider